Paddy farmers in the State, particularly in Palakkad, continue to be unhappy over an allegedly raw deal they have been getting from the State government. In spite of the setbacks they suffered during the first crop of paddy last year, they held some hopes about the government offering a helping hand by way of some budgetary announcements. However, when the State budget was presented a few days ago, the farmers became the most disappointed lot in the State.
Foremost among the demands raised by the farmers was an increase in the procurement price of paddy from ₹28.20 a kg to at least ₹30 a kg. Sections of farmers have been demanding it to be increased to ₹35. But the Budget presented by Finance Minister K.N. Balagopal was silent on it.
A budgetary allocation for paddy procurement, the second demand of the farmers, too was ignored by the government. The farmers would now have to rest assured that uncertainties and delays in procurement of the second crop paddy and its payment would continue without any change.
“The government should have made some positive interventions if it cared the least for the paddy farmers. If it could not increase the procurement price, at least it could have made some budgetary allocations in favour of the farmers,” said Rashtriya Kisan Maha Sangh (RKMS) State vice chairman Muthalamthodu Mani.
Loan liability
The budgetary allocation apart, the current paddy receipt sheet (PRS) loan system being followed by the government is posing a major problem for the farmers. The Supplyco, which is in charge of paddy procurement, has been offering the cost of paddy procured from the farmers as loans to them.
“Although the government says there is no loan liability on the farmer, technically the liability remains ultimately on the farmer,” said National Farmers Protection Committee (NFPC) general secretary Pandiyode Prabhakaran.
Two farmers from Alappuzha district had ended their life last year after they were caught in the vicious PRS loan scheme. Some banks in the State have reportedly begun to deny agricultural loans to farmers citing their low CIBIL score.
Farmers fear that denial of agricultural loans by the banks will force them to approach private money lenders for survival, and this might ultimately lead to inescapable debt traps. But the government reiterated that the PRS loans offered to the farmers would never affect their CIBIL score. Figures released by the government say that more than 1.36 lakh tonnes of paddy was procured from the farmers during the first crop and ₹309 crore given to them through the banks.
According to Mr. Prabhakaran, the government is making false claims. The State government’s mismanagement was the basic reason for the crisis facing the paddy sector, he said. “The problem started with the Supplyco plunging into a financial crisis following the free food kit distribution. It had to divert funds to pay the suppliers,” he said.
